US stock futures showed mixed movement on Thursday morning, with the S&P 500 and Nasdaq futures posting gains, bolstered by Bank of America’s strong quarterly results.
Meanwhile, Dow futures dipped slightly as investors awaited critical economic data for insights into the health of the US economy.
The Dow E-minis were down 0.23%. Meanwhile, the S&P 500 E-minis rose 0.10%, and the Nasdaq 100 E-minis gained 0.28%.
US earnings season gains pace
Bank of America shares rose in premarket trading after reporting a rise in quarterly profit, driven by increased dealmaking activity and higher interest income.
Morgan Stanley added 2% ahead of its own quarterly earnings announcement.
This follows a robust session on Wednesday, where Wall Street’s major indexes logged their biggest one-day gains since November 6, spurred by data showing subsiding inflation and strong earnings from leading banks.
The S&P 500 Banks Index and Regional Banks Index have outperformed broader markets in January, fueled by optimism over a favourable business environment under President-elect Donald Trump.
Of the 28 companies in the S&P 500 that have reported fourth-quarter earnings, 82.1% have exceeded estimates, according to LSEG data.
US economic data on Thursday
Investors await key reports, including December retail sales data, where economists forecast a 0.6% rise compared to 0.7% in November.
Weekly jobless claims data is also anticipated later in the day.
Following Wednesday’s inflation report, the benchmark 10-year Treasury yield eased from its 14-month high, currently at 4.66%.
Traders now expect the Federal Reserve to cut interest rates by 25 basis points in July, reversing earlier bets against rate reductions for 2025.
Senate confirmation hearings for President-elect Trump’s Cabinet nominees continue, with Treasury Secretary nominee Scott Bessent set to testify later today.
Markets will closely monitor his plans regarding tariffs, tax cuts, and deregulation amidst concerns over the U.S. national debt, which exceeds 100% of GDP.
European stocks open higher
European stock markets opened higher on Wednesday, with the Stoxx 600 index gaining 0.47%.
The French CAC 40 index led gains, rising 1.27% as luxury stocks were boosted by strong results from Richemont.
Technology stocks gained 1.47%, with chipmakers rallying on strong earnings from Taiwan Semiconductor Manufacturing Company.
Asian stocks end higher
Asian stocks rose on Thursday, supported by soft US inflation data that fueled expectations of additional Federal Reserve rate cuts this year.
China’s Shanghai Composite added 0.28 percent to close at 3,236.03 ahead of the release of GDP figures and other key economic data on Friday.
Hong Kong’s Hang Seng climbed 1.23 percent to 19,522.89, driven by gains in real estate and technology stocks.
In Japan, the Nikkei edged up 0.33 percent to 38,572.60, while the Topix slipped marginally to 2,688.31 as speculation about a potential Bank of Japan rate hike next week lifted the yen.
The Kospi in Seoul advanced 1.23 percent to 2,527.49 after the Bank of Korea held its policy rate at 3 percent, defying expectations following two rate cuts in the previous quarter.
Australia’s S&P/ASX 200 rose 1.38 percent to 8,327, as an uptick in the unemployment rate raised hopes for an interest rate cut in February.
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